Case Analysis- 3M Corporation Case Analysis- 3M: Profile of an Innovating Company Introduction Relevant Facts The next invention was the wetordry waterproof sandpaper, which came about when an ink manufacturing named Francis Okie asked for samples of every mineral supply in the house. Mr. Okie was persuaded to join 3M as the company first product developer. The wetordry found immediate acceptance in automobile plants and repair shops.
The next critical event occurred in 1925 when Dick Drew a young laboratory technician was sent to deliver sandpaper samples to an auto repair shop for testing seeing the problem that workers were having refinishing the new two-tone paint jobs, Drew began to work with sandpaper adhesives, developing a paper coating that held tightly but stripped off easily.
This was the evaluation of masking tape which quickly found acceptance. While 3M sales force continued to relay on customer’s needs to the company expanding lab technicians adapted the abrasive and tape product line to a variety of applications.
DuPont’s newly introduced cellophane with adhesive was the most important experiment, it was needed for a moisture- proof tape for an insulation job, although unsuccessful came the creationof Scotch Cellulose tape. Through the process of developing its new product line of coated abrasives and pressure sensitive tapes, 3M quickly amassed a strong knowledge of material technologies and an impressive capability in the precision coating process. To leverage and expand this expertise, in 1937 McKnight approved the creation of a Central Research Laboratory launching technological development.
By the creation of the CRL new creations such as electrical tape, reflective tape which resulted in the development of traffic control and safety systems, and magnetic tape which aided in audio and video recording products. McKnight knew that if 3M didn’t expand abroad its competitors would use international markets to build their strengths to battle 3M at home. On the basis of its share of the old Durex companies, 3M created an International Division, after building this original group of six subsidiaries, the company started and principle- First in Defeats others.
Subsidiaries were usually started small and built through self-generated and self-financed growth. From 1929-1966 McKnight transformed 3M from a $1million, U. S. based industrial abrasives and adhesives firm into a $1 billion international corporation with a highly diversified portfolio of business done. Root Problem During the years when McKnight ran 3M he had a philosophy of make a little, sell a little. He gave everyone creative authority. If you had an idea he allowed it to be tested even if the test product did not make it.
Free-ranging discussion also acknowledged that profitable growth in the future would not be as easy to achieve. First, economic slowdown and foreign competition were likely to slow domestic growth. Second, international expansion, a powerful growth engine for 25 years would become more difficult. And, finally, 3M’s leadership acknowledged that the company’s vital new product development capability had been operating less effectively in recent years. As the company moved towards the 1980s, it seemed that the combination of external challenges and internal changes were likely to demand management’s attention.
The decade that followed proved to be one requiring substantial adjustment, restructuring, and even redefinition of some of 3M’s past policies and practices. The new CEO Lou Lehr was challenged by a renewed outbreak of inflation and global recession following the second oil shock. Problem Components During 3M’s biggest reorganization in 30 years, the new CEO decided to collect the entire portfolio of 42 divisions and 10 groups into four business sectors based on their related technologies.
The primary objective was to facilitate the development and diffusion of technologies across closely related divisions, was supported by giving each sector its own laboratory. In the new configuration, the CRL were to concentrate on long-term basic research that would lead the company into entirely new business; the new sector labs had a mandate to focus on the core technologies that would drive medium term growth in the businesses they supported; and the division labs were to continue to work on developing the new products and processes with immediate application or potential.
Generating Alternatives 3M Corporation has many opportunities for growth and innovation in their industry. 3M is a diversified technology company serving customers and communities with innovative products and services. 3M new problem is how to stay on top of there competitors. The following are some alternatives 3M Corporation can choose to capitalize on this market: 3M needs to restructure the organization in order to maintain there quality and high value that they are know for. To do this the company needs to make change in there day to day operations. M needs to plan for the changes that will occur in the coming years because of existing and new competition. What can 3M Corporation do to stay ahead of the game and on top of the industry? 3M maximize on their profits and organization if they boost the amount of investment in the company. Evaluation of Alternatives By 3M redesigning the structure of the company, this will allow management to assess the ability to deal with the consequences of the company’s institutionalized entrepreneurship an ongoing diversification process that had led to the addition of 15 new division and five new product groups during the previous decade. M can follow the structural change by planning business responsibility to the executive vice presidents. On a rotating basis, each headed up a new 12 person corporate strategic planning committee which will oversee the formal planning process modeled after the systems development of GE in the early and mid 70’s. To provide additional strategic perspective at the group level, some 20 strategic business centers can be defined.
Cutting across division they could be as broad as the Tape SBC, which encompassed industrial, consumer, medical, electrical, auto systems, and diaper tapes, or as narrow as the photographic SBC which correspond to a single division. 3M Corporation can maintain and expand 3M’s technological base into other areas such as expanding on the health care industry, or into other fields of the automotive industry. To do any of these alternatives the company will need to do some form of restructuring. Chosen Alternative I choose to expand on 3M maximize on their profits and organization if they boost the amount of investment in the company.
I chose this as my chosen alternative because it is much easier for a company to expand on things that are all ready doing well than it is for them to create a new product. If 3M Corporation builds onthe health care industry they will surpass the other. At the core of 3M Health Information Systems is our health information management legacy. Long the healthcare industry standard for coding and grouping, 3M added a broader set of products and services after the merger with Soft Med Systems in 2006. Now, 3M Health Information Systems offers customers the most complete suite for health information management available from a single provider.
From chart management to coding to abstracting to consulting, 3M products and services simplify processes while strengthening revenue generation and recognition. Implementation Plan With the increasing deployment of online medical records, the pressure to improve patient safety, deliver high-quality care, and provide fast turnaround time for your documentation is at an all-time high. 3M Health Information Systems offers efficient products, services and speech recognition solutions to address these challenges, integrating disparate systems and data across your enterprise to streamline data flow.
With 3M, your organization can embrace technology and achieve results that directly impact your specific HIM, revenue cycle and overall patient care challenges. 3M Dictation and Transcription Benefits: Reduces costs Enhances revenue cycle Increases productivity Decreases turnaround times Enhances accuracy of data Streamlines information workflow Increases efficiency Enables quicker chart completion Accurate, consistent, and compliant coding, editing, and grouping Increased coder productivity
Calculation of expected reimbursement for inpatient and outpatient claims Expedited, accurate chart completion and document management Fewer chart deficiencies and suspensions Enhanced patient care through secure access to more complete documentation Clinicians are able to create, complete, edit, and sign documents without delay Integration options with other third-party health information and clinical systems Demonstrated Results of 3M Health Information Management Products and Services* Decreased the average number of days-to-bill by two, with each day representing $1. million in revenue Reduced A/R days to 50. 2 (down 3. 6 days from the previous year) Increased inpatient coder productivity by 35 percent and outpatient coder productivity by 10 percent Inpatient coding turnaround improved from an average of 11 days to 3. 86 days Outpatient coding improved from an average of 14. 71 days to 11. 96 days Reduced medical record delinquencies from 4,000 to 1,600 in two months, with the current count less than 500 Slashed amount of time needed to get a chart to coding from one week to two days Conclusion
As 3M Corporation moves into 2010 they will need to plan for new changes to occur. They will need to follow all the planned actions that they have in place now such as redesigning the structure of the company. Changes will need to be made at the top and worked throughout the company. Small changes will keep the company moving forward like it has in the past years. With the continuation of planning for changes 3M corporation will be ready for any changes that come there way. The problems that 3M had in the beginning are long gone, they have since been the leading marketers in there industry.
When 3M Corporation started off they did not see any profit result until 1916 after McKnight built a small lab for the ground breaking results of sandpaper. Through other parts of the lab 3M corporation has come up with many other beneficial inventions for home, office, hospital, and electronics, and traffic inventions to name a few. For the company to continue to grow they will need to follow strong guidelines to boost there investments and bring new inventions to the fore front.
Through reorganization, and regrouping the company businesses from four sectors to three sectors they will be able to save money, invest in new inventions that will aim in the reduction in unit manufacturing cost. I believe that if 3M continues on there current path they will be the leaders in there field whether if it is in the U. S. or international. References: DwgraffJ, & Quinn, S. E (2007). Leading Innovation. New York, NY: McGraw_Hill. (n. d. ) Retrieved April 9, 2008, from m Corporation: www. 3Mcorporation. com
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3m Case Analysis. (2018, Mar 08). Retrieved from https://graduateway.com/3m-case-analysis/